Reliance Jio
Reliance Jio gets NCLT's nod to acquire Reliance Infratel
Mumbai/IBNS: Reliance Jio Monday secured approval of the National Company Law Tribunal (NCLT) to acquire debt-laden Reliance Infratel in a bankruptcy resolution that lingered for two years, media reports said.
The Mumbai Bench of NCLT gave the nod on Monday and allowed Reliance Project and Property Management Services Ltd (RP & PMSL), an arm of Jio that looks into its tower and fibre ventures, to deposit Rs 3,720 crore resolution amount in a State Bank of India (SBI) account, media reported.
This paves the way for Jio to complete the acquisition of Anil Ambani-owned Reliance Infratel’s tower and fibre businesses comprising fibre assets of 178,000 route kilometres and 43,540 mobile towers spanning across India.
NCLT passed the order following an October 20 application by Reliance Jio.
In December 2020, the NCLT approved Reliance Infratel’s resolution plan.
But the resolution got stuck in inter-creditor disputes and was delayed.
Still, SBI and some other banks, including Doha Bank, Standard Chartered Bank and Emirates Bank, are engaged in a legal battle in Supreme Court over their respective claim on funds.
The acquisition would help Reliance Jio, which is rolling out 5G networks starting with big cities and metros.
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